India’s progress thus far has not happened because of the support from outsiders but due to its policies in the initial years and its belief in the self. However, in the past few decades, India has stopped believing that it needs strong institutions for long-term growth. All the emphasis is on private sector in the country and the foreign money. In the process of liberalization, India has lost its focus on science, technology and human capital. In the other words, businesses have hijacked India’s road map to progress and modified it to their benefits. The upward moving economic graph is welcome sign but it will be viewed in the perspective of how it is changing life of an ordinary citizen of the country.
2
And then, there is the other side: The Share Market inflation boosted by excess liquidity (India has had Quantitative Easing since 1947) is no index of production or productivity. Rather it is an index of the cutting edge of Indian inflation.:
1
It's amazing that so many posters totally ignore the devastation of colonization. Everyone wants to pretend that the whites came to "save" the darkie natives. India was a rich country before the British came. We were the America of the past - 22% of the world's GDP was India's, the same share the US holds today. Incredibly, China was even richer at that time. The British basically looted us and left us dirt poor. Try searching for "Starvation deaths in India" on Wikipedia, it will open your eyes to what colonization did to us. Churchill, the so-called great man, couldn't care less about us, he didn't think we were human enough, he was as racist as they come and he simply let a million to 3 million Indians starve to death! For over a 100 years under the British, per capita income never grew! Hard to do, but the British were never interested in developing India, they came to loot and that is what they did
After independence, naturally India turned inward - distrusting the west - the cry was self-sufficiency - "if we don't have to depend on anyone, they can't exploit us". Totally understandable but unfortunately wrong - we lost a few decades because of this policy
Finally we may be turning the corner - if projections hold, by the year 2047, a full 100 years after independence, India might be a rich country! A billion plus people lifted from poverty in 100 years! That would be quite an achievement.
After independence, naturally India turned inward - distrusting the west - the cry was self-sufficiency - "if we don't have to depend on anyone, they can't exploit us". Totally understandable but unfortunately wrong - we lost a few decades because of this policy
Finally we may be turning the corner - if projections hold, by the year 2047, a full 100 years after independence, India might be a rich country! A billion plus people lifted from poverty in 100 years! That would be quite an achievement.
2
This article makes India seem like a horrible place to do business. And I thought NJ was bad.
India is a very poor country. About 7% of kids are dying from starvation here. This a great problem here. But at the same time a wish of the United States to help can end up not very good. I hope that India won't lose it's extraordinary culture
2
India pursued a “License Raj” policy under the Nehru-Gandhi dynasty for 44 years following independence. It finally shed parts of its socialist model in 1991 but still continues with five-year plans overseen by a Planning Commission under the auspices of the federal government. Rumor has it that this is a legacy, which the Modi government wants to get rid of. However, it entails discarding a bureaucracy associated with thousands of jobs. Getting fired from a government job in India is next to impossible – the French don’t hold a candle to Indians in this regard.
Nonetheless, change is happening and we will see India growing rapidly in the next decade and more. If the BJP government delivers on its promises, we might be soon praising an India for its “Modi rate of growth,” not deriding it for its “Hindu rate of growth” that spanned most of the Nehru-Gandhi era.
Nonetheless, change is happening and we will see India growing rapidly in the next decade and more. If the BJP government delivers on its promises, we might be soon praising an India for its “Modi rate of growth,” not deriding it for its “Hindu rate of growth” that spanned most of the Nehru-Gandhi era.
3
India has for decades resisted the US model. China has embraced it. Look at the difference?
Anyone who thinks this changes anything in US manufacturing is mistaken. We are in a world economy. We have a population of 314 million out of the 6 billion world population and have one of the lowest population growth rates. We have the highest standard of living and consume a disproportionate share of world resources. Our incomes are the world's highest.
We have Social Security, Workman's Compensation, Medicare, Medicaid, minimum wage, etc., etc. etc. Then we wonder why our labor costs are higher.
People living in the rest of the world are just as smart as we are and work harder. Their wages and standard of living are much lower. As their economy develops, these advantages disappear. Look at Japan today versus 40 years ago.
China still has 600 million people working small plots and barely surviving. This article focuses on India. Africa is yet to come.
We play on a world stage. Our future depends on it.
Anyone who thinks this changes anything in US manufacturing is mistaken. We are in a world economy. We have a population of 314 million out of the 6 billion world population and have one of the lowest population growth rates. We have the highest standard of living and consume a disproportionate share of world resources. Our incomes are the world's highest.
We have Social Security, Workman's Compensation, Medicare, Medicaid, minimum wage, etc., etc. etc. Then we wonder why our labor costs are higher.
People living in the rest of the world are just as smart as we are and work harder. Their wages and standard of living are much lower. As their economy develops, these advantages disappear. Look at Japan today versus 40 years ago.
China still has 600 million people working small plots and barely surviving. This article focuses on India. Africa is yet to come.
We play on a world stage. Our future depends on it.
3
Very American centric vision, obliviously unaware that India is an enormous and varied place with the genetic, linguistic, culinary and sartorial diversity which are usually found in a continent.
Each country has to choose the best suited for its genius.
India is unique and it cannot possibility just copy paste other models without destroying itself.
India has greater linguistic diversity than any other large country and its languages belong to four of the world's major language groups: Indo-European, Dravidian, Austro-Asiatic and Tibeto-Burman. The 1961 census of India listed 1,652 languages, though some of these may have effectively been dialects, and a few languages have died out since then. The big six languages - Hindi, Bengali, Telugu, Marathi, Tamil and Urdu - are each spoken by more than 50 million people. A total of 122 languages are each spoken by more than 10,000 people.
India is the world's largest democracy and precisely 417,037, 606 people voted at the parliamentary election in 2009.
Unlike China where all the land is owned by Government, India ownership is private.
India has the second or third highest population of Muslims in the world.
"We play on a world stage"? Nothing to be proud of. India never aspired for it and the Indic religious philosophy is rooted in highly civilized "live and let live" dictum!
Each country has to choose the best suited for its genius.
India is unique and it cannot possibility just copy paste other models without destroying itself.
India has greater linguistic diversity than any other large country and its languages belong to four of the world's major language groups: Indo-European, Dravidian, Austro-Asiatic and Tibeto-Burman. The 1961 census of India listed 1,652 languages, though some of these may have effectively been dialects, and a few languages have died out since then. The big six languages - Hindi, Bengali, Telugu, Marathi, Tamil and Urdu - are each spoken by more than 50 million people. A total of 122 languages are each spoken by more than 10,000 people.
India is the world's largest democracy and precisely 417,037, 606 people voted at the parliamentary election in 2009.
Unlike China where all the land is owned by Government, India ownership is private.
India has the second or third highest population of Muslims in the world.
"We play on a world stage"? Nothing to be proud of. India never aspired for it and the Indic religious philosophy is rooted in highly civilized "live and let live" dictum!
4
You are sadly out of touch. You need to catch up on a few things that have happened in the last 25 years or so of your life. Have you heard of Germany? An overpaid working class is not our problem; a self-indulgent and not very imaginative managerial class is. Luckily there is still a lot of innovation left in most Americans, and we are unsurpassed at creating new companies.
GE, after moving a lot of manufacturing to China to pick the low-hanging fruit of cheap labor are moving important parts back to America, because having the production feedback into design, and holding onto intellectual property, are better long-term strategy.
German companies, with much better labor relations (imagine--managers actually have to sit with worker reps in board meetings!) do just fine--with higher wages, much longer vacations, etc.
Your rant is tired old cliches more in tune with 1950s America.
GE, after moving a lot of manufacturing to China to pick the low-hanging fruit of cheap labor are moving important parts back to America, because having the production feedback into design, and holding onto intellectual property, are better long-term strategy.
German companies, with much better labor relations (imagine--managers actually have to sit with worker reps in board meetings!) do just fine--with higher wages, much longer vacations, etc.
Your rant is tired old cliches more in tune with 1950s America.
"China’s investigations of multinationals, persistent tensions with neighboring countries and surging blue-collar wages have prompted many companies to start looking elsewhere for large labor forces."
Ridiculous, Chinese blue-collar wages are "surging," China is carefully regulating multinational companies and these are supposed to be problems for whom? As for tensions with neighbors, well, India has all sorts of tensions with neighbors but China is at peace and will surely remain so and tensions are resolved by diplomacy. I have no idea why there is a need to criticize an economically dramatically successful China in an article on India.
Ridiculous, Chinese blue-collar wages are "surging," China is carefully regulating multinational companies and these are supposed to be problems for whom? As for tensions with neighbors, well, India has all sorts of tensions with neighbors but China is at peace and will surely remain so and tensions are resolved by diplomacy. I have no idea why there is a need to criticize an economically dramatically successful China in an article on India.
1
95% of countries depend on America for its products, making it the largest economic global power in the world, and manufacturing for exports has risen 48% from 2009 until now. China is second in the lead, and negotiations are taking place now for free and fair trade to raise the salaries of American laborers, 'The Trans Pacific Partnership' with China. In the meantime, India's economic power is coming to the fore, and it is also a power to be reckoned with.
1
" As for tensions with neighbors, well, India has all sorts of tensions with neighbors but China is at peace "
Surely you read the newspapers now and then? China probably has issues with more neighbors than any other nation. Here's a shortlist: Tibet, Xinjiang, India, Vietnam, Korea, Japan, Philippines, Indonesia, ... basically every neighbor.
Surely you read the newspapers now and then? China probably has issues with more neighbors than any other nation. Here's a shortlist: Tibet, Xinjiang, India, Vietnam, Korea, Japan, Philippines, Indonesia, ... basically every neighbor.
3
Finally - after decades - an article that actually Talks about India as a country with its set of development issues - as opposed to ALL the articles thus far (this one excepted) ranting and raving about the right wing this and communal that!
4
Besides building the physical infrastructure, Modi needs to build the human infrastructure as well. India's problem fundamentally is the lack of a high quality, modern education system that provides free education at least till high school. Leaving large sections of the society illiterate has obvious problems and they are on display in today's India. Haven't heard him talk about this at all. I hope he realizes this.
Its a start nevertheless. Good that this time the Indian electorate decided to throw away the yoke of successive Congress governments that seemed like vestige of the British colonial rule. They looted and did the minimum that was needed to perpetuate their hold on power.
The Indian elephant has opened one eye. A few decades from now it will start dancing and the rest of the jungle will watch in awe.
Its a start nevertheless. Good that this time the Indian electorate decided to throw away the yoke of successive Congress governments that seemed like vestige of the British colonial rule. They looted and did the minimum that was needed to perpetuate their hold on power.
The Indian elephant has opened one eye. A few decades from now it will start dancing and the rest of the jungle will watch in awe.
3
When Prime Minister Modi welcomed President Obama in a splendid State visit recently, their relations appear to be cordial, and the bond between the two countries stronger than ever. The leaders were able to discuss some important matters of mutual concern to them, and there is reason to believe that the need for better education was raised as a high priority, while the Indian elephant was present at their side with eyes open.
2
I am sure Modi is attempting not to copy cat the western solution of creating gigantic business models for improving and uplifting the millions of poor. He has the genius to realize the MNC have undermined the efforts of the poor to build their livelihoods doing by ignoring them altogether. Unfortunately poor cannot "participate in the benefits of globalization without an active engagement and without access to products and services that represent global quality standards".
When Indian born Prof. C.K. Prahalad and Stuart Hart proposed theory of The Fortune at the Bottom of the Pyramid (BOP), they had exactly the type of people of India where the poverty mask the fact that the very poor represent resilient entrepreneurs and value-conscious consumers. http://www.cs.berkeley.edu/~brewer/ict4b/Fortune-BoP.pdf
India to proper actively perusing BOP model of economic governance of Inclusive capitalism is important.
Satisfying to see many measures of the Government is in BOP direction.
Critics are unhappy of miracle not happening. Real changes take time unless the country is headed by a quake. Country is burdened with corruption-ridden and conservative bureaucracy. It is a Herculean task to purge the system. Luck, patient and perseverance are essential and Modi has what it takes to make it happen.
He is fighting the tyranny of time with voters expecting instant results. He being a statesman and not merely a politician certainly has in him to change India.
When Indian born Prof. C.K. Prahalad and Stuart Hart proposed theory of The Fortune at the Bottom of the Pyramid (BOP), they had exactly the type of people of India where the poverty mask the fact that the very poor represent resilient entrepreneurs and value-conscious consumers. http://www.cs.berkeley.edu/~brewer/ict4b/Fortune-BoP.pdf
India to proper actively perusing BOP model of economic governance of Inclusive capitalism is important.
Satisfying to see many measures of the Government is in BOP direction.
Critics are unhappy of miracle not happening. Real changes take time unless the country is headed by a quake. Country is burdened with corruption-ridden and conservative bureaucracy. It is a Herculean task to purge the system. Luck, patient and perseverance are essential and Modi has what it takes to make it happen.
He is fighting the tyranny of time with voters expecting instant results. He being a statesman and not merely a politician certainly has in him to change India.
2
"Land disputes are still common. Villagers demanding higher prices for their land blocked a Boeing project for two years."
Shame on those villagers for not immediately capitulating. Whose land do they think it is anyway?
Shame on those villagers for not immediately capitulating. Whose land do they think it is anyway?
4
"Whose land do they think it anyway?" - It is their land sir!
Government pays money to these villagers to set up MNC's. I don't know about your country but it is a fundamental right to posses property in India. And it is their discretion to either to give the land or keep it.
Most of the time, the government pays them minimum price for the land and as the project starts the prices shoot up hence these villagers fell cheated of their money. You must realize for these people their land was everything, even if the government offers them job at the completion of the project their livelihood is destroyed for couple of years.
Government pays money to these villagers to set up MNC's. I don't know about your country but it is a fundamental right to posses property in India. And it is their discretion to either to give the land or keep it.
Most of the time, the government pays them minimum price for the land and as the project starts the prices shoot up hence these villagers fell cheated of their money. You must realize for these people their land was everything, even if the government offers them job at the completion of the project their livelihood is destroyed for couple of years.
Naren,
Of course I agree with you. I am sorry my intended irony did not come across more clearly.
Of course I agree with you. I am sorry my intended irony did not come across more clearly.
People are complaining about the call centre service. Now that's really a first world problem, and it sheds light on the reason the so-called supremacy of the first word is in sunset mode. Indians are corrupt, and lack toilets, yes. Indians are also extremely hard-working, still value families and human relations, and are connected to their culture even while moving into the future. India will definitely go places. Most people who live abroad have a very narrow view of India. There is not one India, there are more than a thousand.
5
It seems to me that what is fueling Prime Minister Modi's growth drive is his wish to reduce poverty in the country and he sees a vibrant economic sector having a key role in this.
The urgency level is high as the proportion of the population that is poor is high and their plight is desperate.
He also wants to make Indians proud of their heritage, talent and their country.
Very noble aims and yes, there will be some less than desirable outcomes such as reduced pollution controls, safety standards, changes to labor law. But if it results in food on the table, "normal" and not wretched living, then why not? Over time the country can revert back to the controls they gave up through strong civic institutions.
I hope that the PM also propagates an inclusive democracy for all Indians, irrespective of their religion. Something that is a question mark for many.
The urgency level is high as the proportion of the population that is poor is high and their plight is desperate.
He also wants to make Indians proud of their heritage, talent and their country.
Very noble aims and yes, there will be some less than desirable outcomes such as reduced pollution controls, safety standards, changes to labor law. But if it results in food on the table, "normal" and not wretched living, then why not? Over time the country can revert back to the controls they gave up through strong civic institutions.
I hope that the PM also propagates an inclusive democracy for all Indians, irrespective of their religion. Something that is a question mark for many.
3
Miracle, shmiracle.
Anyone can have 7% growth with a high birth rate for cheap labor and a complete disregard for the environment and citizens' health.
Modi has promised to double India's use of coal. Pollution in Delhi is now worse than in Beijing. In the countryside cow-dung is used for cooking fuel, while farmers go into debt to pay for chemical fertilizers. Salinization from irrigation is ruining the fertile soil of India's breadbasket, the Punjab. And climate change has made the monsoon less and less reliable.
Yet - growth, growth, growth! And while Modi decries sectarian violence, his RSS gurus counsel Hindu women to have more children.
And the rupee is gaining value. Somebody better tell them that is NOT good news. Not if you're competing with China, it's not.
Anyone can have 7% growth with a high birth rate for cheap labor and a complete disregard for the environment and citizens' health.
Modi has promised to double India's use of coal. Pollution in Delhi is now worse than in Beijing. In the countryside cow-dung is used for cooking fuel, while farmers go into debt to pay for chemical fertilizers. Salinization from irrigation is ruining the fertile soil of India's breadbasket, the Punjab. And climate change has made the monsoon less and less reliable.
Yet - growth, growth, growth! And while Modi decries sectarian violence, his RSS gurus counsel Hindu women to have more children.
And the rupee is gaining value. Somebody better tell them that is NOT good news. Not if you're competing with China, it's not.
2
Well, if things are that bad, surely someone should let the NYTimes know! The data do not seem to support your analysis.
2
Most of this information is from other articles in the Times. And they surely have access to Times of India.
But it's all about growth.
Who else is going to buy diamond ads?
But it's all about growth.
Who else is going to buy diamond ads?
1
I am an Indian and live considerable time in US and I full agree with John_Huffam.
For a typical American living so far away from India without any understanding nuances of the Indian society it so very easy to cherry pick some random events and post it as generally occurring facts. I refer to" In the countryside cow-dung is used for cooking fuel, while farmers go into debt to pay for chemical fertilizers. Salinization from irrigation is ruining the fertile soil of India's breadbasket, the Punjab. And climate change has made the monsoon less and less reliable"
This remind me of "Fallacy of quoting out of context"
http://en.wikipedia.org/wiki/Fallacy_of_quoting_out_of_context
Arguments based on this fallacy typically take two forms:
As a straw man argument, which is frequently found in politics, it involves quoting an opponent out of context in order to misrepresent their position (typically to make it seem more simplistic or extreme) in order to make it easier to refute.
As an appeal to authority, it involves quoting an authority on the subject out of context, in order to misrepresent that authority as supporting some position.
For a typical American living so far away from India without any understanding nuances of the Indian society it so very easy to cherry pick some random events and post it as generally occurring facts. I refer to" In the countryside cow-dung is used for cooking fuel, while farmers go into debt to pay for chemical fertilizers. Salinization from irrigation is ruining the fertile soil of India's breadbasket, the Punjab. And climate change has made the monsoon less and less reliable"
This remind me of "Fallacy of quoting out of context"
http://en.wikipedia.org/wiki/Fallacy_of_quoting_out_of_context
Arguments based on this fallacy typically take two forms:
As a straw man argument, which is frequently found in politics, it involves quoting an opponent out of context in order to misrepresent their position (typically to make it seem more simplistic or extreme) in order to make it easier to refute.
As an appeal to authority, it involves quoting an authority on the subject out of context, in order to misrepresent that authority as supporting some position.
4
This was exactly the reason Modi was elected with such a big mandate. It has given him the flexibility to implement business friendly decisions unlike the previous Prime Minister. There is a still long road ahead but good to see that at least we are progressing in the right direction. Change will come but it will take some time.
5
Please work on the problem of open defecation - according to the BBC, 70% of Indians in villages (550 million people) defecate openly and 13% of urban households do so. This is a major problem.
1
Pitching for relaxing "administrative controls" to improve ease of doing business, top industry leader Deepak Parekh has said that impatience has begun creeping in among businessmen as nothing has changed on ground in first nine months of the Narendra Modi government.
He said the industry is still optimistic about the changes it expects from the Modi government, but optimism is not translating into revenues and there has been little improvement on 'ease of doing business' front so far.
This is Deepak Parekh,Chairman of HDFC Bank & one of India's most respected Businessman.18,Feb,2015,Hindustan Times.
What's Keith Bradsher writing about?Reality is far different from the statistical GDP figures based on which he has written the article.
He said the industry is still optimistic about the changes it expects from the Modi government, but optimism is not translating into revenues and there has been little improvement on 'ease of doing business' front so far.
This is Deepak Parekh,Chairman of HDFC Bank & one of India's most respected Businessman.18,Feb,2015,Hindustan Times.
What's Keith Bradsher writing about?Reality is far different from the statistical GDP figures based on which he has written the article.
This is so true also for start ups.
1 Bangalore overook Boston in start up venture capital raised in 2014 and Beijing overtook London in start up venture capital.
2. Education Indians and Chinese ( often educated at top US schools but frustrated with 10 year green card waiting queeus) are all starting companies in Mumbai, Singapore , Bangalore etc...
3. An ivy educated engineer will need 10+ years to get his green card versus a salsa dancer who can get the green card in months. In a knowledge based economy, capital goes where it can get the best return and India is booming with start ups
4.Indian start ups raised more than USD 700MM just last week
5. Europe, Dubai, Singapore are all wooing indian & chiinese companies with quick start up visas
1 Bangalore overook Boston in start up venture capital raised in 2014 and Beijing overtook London in start up venture capital.
2. Education Indians and Chinese ( often educated at top US schools but frustrated with 10 year green card waiting queeus) are all starting companies in Mumbai, Singapore , Bangalore etc...
3. An ivy educated engineer will need 10+ years to get his green card versus a salsa dancer who can get the green card in months. In a knowledge based economy, capital goes where it can get the best return and India is booming with start ups
4.Indian start ups raised more than USD 700MM just last week
5. Europe, Dubai, Singapore are all wooing indian & chiinese companies with quick start up visas
4
This gloating is a bit pre-mature. We heard same gloating few years back and then things start falling apart. Nothing has much changed yet.
1
First the article says negative things about left-wing countries or those opposed to the U.S., and then goes on to "praise" India because it is now under a business friendly government:
"The stock market and rupee are surging. Multinational companies are looking to expand their Indian operations or start new ones. The growth in India’s economy, long a laggard, just matched China’s pace in recent months."
What is the purpose of a nation's economy? To make stock-market speculators and multinationals richer? Are we to assume that this "prosperity"will trickle down? Should anyone wonder why pro-business policies which often impoverish most people still have any credibility? Who is promoting such policies?
"The stock market and rupee are surging. Multinational companies are looking to expand their Indian operations or start new ones. The growth in India’s economy, long a laggard, just matched China’s pace in recent months."
What is the purpose of a nation's economy? To make stock-market speculators and multinationals richer? Are we to assume that this "prosperity"will trickle down? Should anyone wonder why pro-business policies which often impoverish most people still have any credibility? Who is promoting such policies?
2
In the name of growth, the Modi government is diluting various laws, some of which include diluting the environmental laws, which would ultimately hurt India.
So far, Modi's lip service is not doing anything good for the country unless he really starts implementing the reforms, but it should not be at the cost of the poor, benefiting the large corporates.
So far, Modi's lip service is not doing anything good for the country unless he really starts implementing the reforms, but it should not be at the cost of the poor, benefiting the large corporates.
3
Don't be so happy about India. I see it a lit bit another way, because if the rest of the changes are even a little like this: "Small factories no longer need to shut down every year for government inspectors to spend a day checking boilers." Then I do expect this growth will soon be followed by tremendous human tragedy.
5
This article is shortsighted. It focuses on the very recent "investor friendly" steps taken in haste by the current government. It does not take into account the longterm damage done by Nehru's "license raj" and Indira Gandhi's massive fortification constructed to thwart foreign investments. The country's infra structure was thoroughly neglected, while corruption became the driving force of the feeble economy. Black Money is a patently Indian term (NYT may want to do a series on this subject). Education system is spotty and archaic. India has inherited problematic neighbors and that does not help. So for short term Indian economy may shine on the world stage, but its masses (40% of the population lives in abject poverty) will keep on suffering for a long long time.
3
The biggest challenge facing India is its excessively high birth rate. Neither India nor the world can can afford the demands it creates for natural resources and its impact on global warming. Excessive births far out weigh concerns about labor supply or any of the other societal failings that plague India (the caste system, abuse of females, poverty, to name a few). Indira Ghandi lost her life largely because of her efforts to curtail births but no leader since then has made a real try to get the birth rate down.
3
There is so much wrong with your comment, I don't know where to start. First of all, India's current population growth rate (as per the CIA world factbook) is 1.25%. That is well below that of Singapore (1.92%) Philippines (1.81%) annd Israel (1.46%) and only marginally higher than Mexico (1.21%), Ireland (1.20%) and Norway (1.19%). Also, the population growth rate is reducing every year.
Secondly, its "Indira Gandhi" not "Indira Ghandi" and her death had nothing to do with birth rates. She was killed by her Sikh security guards as revenge for the siege of the Golden Temple by security forces.
Secondly, its "Indira Gandhi" not "Indira Ghandi" and her death had nothing to do with birth rates. She was killed by her Sikh security guards as revenge for the siege of the Golden Temple by security forces.
2
Macroeconomic data on nations should always include that of income inequality.
1
I hope improved economic conditions bring improved treatment of women.
1
The trouble with surges is that they last a relatively short time and ignore longer term problems. Before celebrating happy days here again, consider that not too long ago headlines were filled with the Rupee's tanking? With India, where to begin?: overpopulation, environmental degradation, fecal contamination of water, etc. Wonder how much those 650million below the median are celebrating.
@Ned Kelly - Amazing! One positive report about India's economy and you've got to find something negative to say. "Wonder how much those 650million below the median are celebrating." Why don't you go find out? This report is about how things are getting better - there's little data to provide any basis for your cynicism.
2
Hard work is required of every nation at the moment. Times have been hard, and are getting harder for some on a global economic basis, and other fronts. But India. Now India will survive. Not easily. Not without facing huge obstacles. Not without faith, or without a wish to excel. But India is coming at its own pace to the fore and is already recognized by others, as a power to be respected with an ancient history behind it. Whether all of us will be seeing this progress in our time is perhaps better left unanswered until tomorrow.
2
Mr. Modi is not perfect, but there is no leader in India who is not corrupt and who believes in creating a strong, capitalist country.
The naysayers would never give him any credit. No wonder Obama and Modi get along so well.
The naysayers would never give him any credit. No wonder Obama and Modi get along so well.
1
Rajeev Chandrasekhar said about Modi: "He hasn't introduced any new ideas". Indeed Modi has to deliver the big bang reforms he promised to revive the economy.
India's recent growth figures have, apart from its new way of calculating GDP, also cheap oil prices to thank for!
While growth is important, so are environmental issues! India has to avoid being another big polluter, like China and the US!
India's recent growth figures have, apart from its new way of calculating GDP, also cheap oil prices to thank for!
While growth is important, so are environmental issues! India has to avoid being another big polluter, like China and the US!
2
those responsible for and complicit in gujarat's government for the deaths of 1000 people in gujarat in 2002, and the victims were both hindus and muslims, should not be in power. they should be in prison.
1
Its really not fair for people from western countries to talk about environmental degradation when they have been and continue to be the major cause of this degradation in this world. Till date US and Europe continue to be the leaders in coal-led pollution of the world, with Indian coal usage not even 10 of the US usage. With a 1.2 billion population and low oil and gas reserves, India has no choice but to use coal to power its industries. The priority of Indian govt is rightly economic advancement to alleviate its own poverty, it should not concern itself with undoing the mess others have brought about in this world.
4
Over the decades, living in New York and working in the humanitarian community, reporting that the staff members have a preference for going on mission and being posted overseas. They return from red zones, and feel that the work they are able to accomplish is achieving something to the good. Their mental horizons have also been widened. One of our most important duty stations is New Delhi, a large and complex operation, where it is considered an honor to be posted there at a high level.
Now. Thin as it may seem, the one area where I have noted that staff tend to 'grieve' over when assigned overseas is Geneva. One would think that it is a particularly hardship post that one has been given by the sounds of it, and yet the lakes of Switzerland are beautiful, the location wonderful for visiting other European countries, the people apparently law-abiding citizens, and yet there appears to be something missing in the air, and Switzerland is not a big polluter! From the sounds of others, it does not have a speck of dust in it...
Now. Thin as it may seem, the one area where I have noted that staff tend to 'grieve' over when assigned overseas is Geneva. One would think that it is a particularly hardship post that one has been given by the sounds of it, and yet the lakes of Switzerland are beautiful, the location wonderful for visiting other European countries, the people apparently law-abiding citizens, and yet there appears to be something missing in the air, and Switzerland is not a big polluter! From the sounds of others, it does not have a speck of dust in it...
3
For India to really become a world economic power, it desperately needs a major revision of its unreliable, inefficient and often corrupt legal system. World businesses need to be able to rely on a strong and independent legal system that will deliver just and somewhat predictable results. Contracts need to be reliably and efficiently enforced. Investments need to be protected. While the US legal system has some warts, it is good enough so that a great deal of foreign money is "parked" here for safety.
7
You are absolutely right George - but to be honest its an easy arm-chair observation to make. What could be realistic changes made to improve this situation ? That is a much harder question to answer.
India's legal system suffers from an outdated penal code and massively understaffed courts. It doesn't have anywhere near the citizens to lawyers ratio that the developed countries have. Trying to match that ratio means graduating more lawyers and giving them enough incentive to pursue a career in law - no one knows how to do this!
The government has tried to set up fast courts for sexual assault cases and that difference can in fact be felt already. For the overall legal system to improve and effectively enforce first world norms like intellectual property, it might take another 50 - 60 years.
In the meantime what India does have is an enormous young and aspiring middle class that the world wants to sell to. In the end you'll find that the economic incentives of making it in this market will outweigh the legal concerns ( and environmental ).
India's legal system suffers from an outdated penal code and massively understaffed courts. It doesn't have anywhere near the citizens to lawyers ratio that the developed countries have. Trying to match that ratio means graduating more lawyers and giving them enough incentive to pursue a career in law - no one knows how to do this!
The government has tried to set up fast courts for sexual assault cases and that difference can in fact be felt already. For the overall legal system to improve and effectively enforce first world norms like intellectual property, it might take another 50 - 60 years.
In the meantime what India does have is an enormous young and aspiring middle class that the world wants to sell to. In the end you'll find that the economic incentives of making it in this market will outweigh the legal concerns ( and environmental ).
4
The US also enjoys "expectation" that the dollar will be supported by the FED and US interests protected by an aggressive overseas us for defense of US interests. Value created by expectations is ephemeral without production gains.
This article is so much spin.
@K Henderson - I'm visiting my home country after many years away and can assure you it is not spin. It provides a fairly accurate report of the optimism and growth here today.
4
K Henderson,
Why, if one may ask? Is there something that is bluster here and that needs a correction. Perhaps if you might elaborate, this comment would be of clarification to some others.
It is a well-measured article to this reader's sense of progress in the Third World, a nearing economic rapport between the US and India, along with a sound of pragmatism and reality contained within its borders.
Why, if one may ask? Is there something that is bluster here and that needs a correction. Perhaps if you might elaborate, this comment would be of clarification to some others.
It is a well-measured article to this reader's sense of progress in the Third World, a nearing economic rapport between the US and India, along with a sound of pragmatism and reality contained within its borders.
2
I only wish there is a Black Friday like mad rush in USA for Indian made garments, farm produicts, maybe even Software?, Pharmaceuticals. With an English literate educated class, it is a good destination for Medical Tourism. and also Tourism.
Gujrath the home state of PM Narendra Modi has a very Lax environmental Laws.
As Jay Leno once said: We know something is wrong in the Merika; When the Health Secretary is from Wisconsin, and Environmental Secretary is from New Jersey.
Gujrath the home state of PM Narendra Modi has a very Lax environmental Laws.
As Jay Leno once said: We know something is wrong in the Merika; When the Health Secretary is from Wisconsin, and Environmental Secretary is from New Jersey.
India is a great opportunity for investors willing to venture a little outside their comfort zones. The big development in the last few years has been the revolution in the "soft infrastructure". It is the overthrow of the corrupt, dynastic, and incompetent, governments of the past, with better state and central governments. And a realization among the indian youth that intellectually they are as capable as the western youth. A big asset of India is its human resource and flow of progressive ideas through the internet. An economic revolution is underway, and a lot of adversely affected parties, including the old political/bureaucratic establishment, would like to obstruct it, delay it, or sabotage it. So, progress may be a little slow but almost sure.
2
India's long love affair with Russia is apparently over, and that can only be good for the country.
4
India is a mess. Who would invest here?
@JO - There is a saying in India... roughly translated it goes: what would a monkey know about the taste of ginger. This applies accurately to your comment.
3
@JO : "India is a mess. Who would invest here?"
Coca-cola, Nissan, General Motors, Honda, Boeing, Microsoft, IBM, Nike, Suzuki, Volkswagen, Hyundai, Renault, Samsung, Yamaha, General Electric, John Deere, Adidas.... etc ...
Or would you like this listed alphabetically?
Coca-cola, Nissan, General Motors, Honda, Boeing, Microsoft, IBM, Nike, Suzuki, Volkswagen, Hyundai, Renault, Samsung, Yamaha, General Electric, John Deere, Adidas.... etc ...
Or would you like this listed alphabetically?
4
It was interesting to see this caption under the second photograph accompanying the article
"Land disputes are still common. Villagers demanding higher prices for their land blocked a Boeing project for two years."
For years, villagers were denied the fair market price for land that used to be acquired for industrialization. It is encouraging at least to see that people in the villages now have found the voice to demand what is reasonable and negotiate with large multi-national companies. If in the name of progress, we trample villagers' rights, then development in India will feel like the way it is in China.
"Land disputes are still common. Villagers demanding higher prices for their land blocked a Boeing project for two years."
For years, villagers were denied the fair market price for land that used to be acquired for industrialization. It is encouraging at least to see that people in the villages now have found the voice to demand what is reasonable and negotiate with large multi-national companies. If in the name of progress, we trample villagers' rights, then development in India will feel like the way it is in China.
5
I have been to India several times and my wife's family is originally from India so I follow India affairs closely. During our recent visit we found out that a local company had let go of workers in large numbers and these workers were baffled at the lack of protection and social safety net. This incident is anecdotal but the Nehruvian policy although kept the growth at lower ends, had a strong framework for workers' rights. I hope Mr.Modi strikes a decent balance in pursuit of growth. Do not make the same mistakes the US and China have made. That means creating a strong social safety net and environmental protection for generations to come. I know these are buzz words our Republican congress do not like but hey, we have to breathe, right? India has a long tradition of close knit families and neighbors caring for each others. As someone who grew up in a big western city, it was really nice to experience this. I suspect this trait would be the first casualty of rural migration and rapid urbanization. Again balance is the keyword here.
12
India's main hurdle for progress is corruption which is at every level of official business. This official corruption needs to be rooted out. At the same time, proper regulations should be put in place so that the consumers are properly protected. Watered down regulations in America because of the lobbying by the rich and powerful corporations are harming American people, and even resulting in death in some cases. India should avoid this type of under regulation. India also needs to guard against income inequality which will undo the society in the long run.
1
Glad to hear it! SO keep Indians in India and away from IT jobs here. They are driving down the consulting rates!
Perhaps as a stretch in a free market world you can explain the declines in the rates however the noxious work culture that is being brought into the work place by some of them is far worse. These for some reasons appear to be usually the one who come straight from India and have not attended School here.
India is not even in the same league as China. China's "slowing" economy is by design! They are in transition from export based economy to consumer based economy. Comparing the two countries, China's GDP is still 4x larger. NYT should also know well that both countries GDP figures are not be trusted. The latest India GDP figures have been described as "ridiculous" by other media sources, but not here, since the goal is to frame India as beating China.
Given China's tremendous lead in education, it would be difficult to imagine India "beating" China any time soon -- not within our lifetime.
Given China's tremendous lead in education, it would be difficult to imagine India "beating" China any time soon -- not within our lifetime.
4
Get back to us when they pave the roads and the number of working toilets exceed the number of cell phones.
At least China sees the value of investing in infrastructure.
At least China sees the value of investing in infrastructure.
2
And part of all that wonderful progress is the construction of a record number of coal-burning power plants. Take a look at today's article in the NYT about how coal emissions are killing our oceans. Not that I'm a fan of it, but what about nuclear power. Or in a pinch, has anyone ever heard of photovoltaic? THAT could make a difference all around the world, because in time we will feel the effects of those coal plants, if not already. Just ask anybody in Boston!
~TR
~TR
Cheap labor! Sell! Youth! "...China’s investigations of multinationals, persistent tensions with neighboring countries and surging blue-collar wages have prompted many companies to start looking elsewhere for large labor forces..." surging wages, indeed. It's cheaper in India than it is in China! The buildings built cheaply will fall on people. Remember what the wise person said: He who forgets history is doomed to relive it. India will go down just like China but the capitalist sellers will be there first! Greed isn't good! It's just a fact of being a human!
All that I am hearing is that India is a fabulous market, and with more barriers to foreign investment melting down, the market that is India, will get increasingly more fertile, for capital, that is. When pitching this narrative of the ripening of the Indian or Chinese markets, what the Western media glaringly leaves out is the state of the nation. How would India fare as a nation in the near and distant future? One keeps hearing that it'll fare well because it has a "booming" economy, a "vibrant democracy" and a "completely free press", which are vacuous words as the "boom" seems to periodically touch 25% of the greedy upper and middle classes, with consumption on the upswing, the "vibrancy" of the democracy is asserted simply because the masses vote in the millions without much forethought of how the voting will catalyze structural changes, and the "freedom" enjoyed by the press is advertised because the at a glance the media is left alone primarily because it doesn't really affect/influence public policy as it does in the West. The "freedom" of press and "vibrancy" of Indian democracy is celebrated by the Western media primarily in opposition to the lack of such in China. China is feared by America, sometimes hated by Europe, so India's image as a "powerhouse" gains in contrast with the image of China.
3
Just back in July the New York Times ran a story on the crisis in India of open defecation on the front pages. http://www.nytimes.com/2014/07/15/world/asia/poor-sanitation-in-india-ma...
Considered a critical issue by the World Health Organization, the article points out there is no effective plumbing and waste infrastructure in any Indian city.
For Indian women, heading to the fields alone raises the risk of assault, a danger that gained international attention in May with the two girls raped and hanged after they went to defecate outdoors in Badaun.
http://www.bloomberg.com/news/articles/2014-08-03/india-s-toilet-race-fa...
How could any government not make it a top priority to address the lack of a functional plumbing and waste infrastructure?
Considered a critical issue by the World Health Organization, the article points out there is no effective plumbing and waste infrastructure in any Indian city.
For Indian women, heading to the fields alone raises the risk of assault, a danger that gained international attention in May with the two girls raped and hanged after they went to defecate outdoors in Badaun.
http://www.bloomberg.com/news/articles/2014-08-03/india-s-toilet-race-fa...
How could any government not make it a top priority to address the lack of a functional plumbing and waste infrastructure?
1
There is one sentence that shouted out, "Land disputes are still common. Villagers demanding higher prices for their land blocked a Boeing project for two years."
Recently, India reverted its eminent domain laws to an antediluvian colonial era 1897 law - that too via recess executive order. Under this the govt. can take land from one private owner - the farmer - and award it to another private owner - the developer or industrialist. Such allocation of resources to growth may be "neoliberal" but definitely not democratic.
Some time ago there was a bloody revolt in an Eastern State on eminent domain. Today, the the whole of central India is in civil war because centrally allocated private mining contracts and uprooting the tribal population.
The development train for India must have all classes of accommodation. The current neoliberal train has only first class seats.
Recently, India reverted its eminent domain laws to an antediluvian colonial era 1897 law - that too via recess executive order. Under this the govt. can take land from one private owner - the farmer - and award it to another private owner - the developer or industrialist. Such allocation of resources to growth may be "neoliberal" but definitely not democratic.
Some time ago there was a bloody revolt in an Eastern State on eminent domain. Today, the the whole of central India is in civil war because centrally allocated private mining contracts and uprooting the tribal population.
The development train for India must have all classes of accommodation. The current neoliberal train has only first class seats.
Like many others, I was hopeful that Prime Minister Modi's fabled energy and dynamism would translate into a very swift pace of reform, with a wave of deregulatory actions, investment programs and the like. Like many in India, I have been very disappointed to date. There has been no lack of speechifying, but precious little action. And a whole lot of the wrong kind of speechifying and action (as in bigoted and lunatic rantings) from India's religious right, who are part of PM Modi's electoral coalition.
The recent electoral debacle that beset Modi's party in the New Delhi legislature elections is hopefully a blast of cold water that will spur the Government to be more aggressive on economic reform and actively shy away from the politics of religious confrontation. The first signs that this may happen came in a speech the PM made earlier this week at a Christian gathering to honor two Indians who had been canonized, when he said that his Government would guarantee freedom of religion and act against those who infringed it. Good first step.
Now, for some action (on all fronts, social and economic). Please. There's not a moment to lose.
The recent electoral debacle that beset Modi's party in the New Delhi legislature elections is hopefully a blast of cold water that will spur the Government to be more aggressive on economic reform and actively shy away from the politics of religious confrontation. The first signs that this may happen came in a speech the PM made earlier this week at a Christian gathering to honor two Indians who had been canonized, when he said that his Government would guarantee freedom of religion and act against those who infringed it. Good first step.
Now, for some action (on all fronts, social and economic). Please. There's not a moment to lose.
2
The article quotes a worker saying that she knows that she "must be given employment until age 58," and then speaks of, "those labor law protections," in the following sentence. Does anyone know if India really has such a labor law? A quick look on Google found 58 to be the minimum age to collect a pension in India, but nothing about employers being required to provide employment up to that age.
1
India's bureaucracy may be huge and corrupt and the laws incredible unyielding, but India IS a democracy so its economic growth, especially if it overtakes authoritarian China, is a wonderful piece of news in this gloomy start of the 3rd millennium. The US about to reach energy independence is the other wonderful piece of news. The third wonderful piece of news for mankind would be the end of the acuteness of the political divide in the US so that the country can be again a beacon upon the hill. But don't hold your breath, not even the 2016 elections.
7
India is a Democracy british style, and is way much, less corrupt or subjected
to corruption, as the chinese monopolistic, super corrupted, totally undemocratic, centralized power, in the hands of a few, in the political and military fields.
It has to be recognized, that India is also a huge country, with a huge population, and a caste problem, (social difference), but it has a growing,
well educated middle class, and with the proper investments, especially
foreign ones, a great potencial in science, technology, IT, and all kinds of
manufacturing, plus a huge pool of cheaper labour, much cheaper than China, and with better quality products, contrary to chinese poisoned products (childrens toys) or chinese plagiarism, and counterfeiting.
India can be an economic power, in the next 20 years.!
to corruption, as the chinese monopolistic, super corrupted, totally undemocratic, centralized power, in the hands of a few, in the political and military fields.
It has to be recognized, that India is also a huge country, with a huge population, and a caste problem, (social difference), but it has a growing,
well educated middle class, and with the proper investments, especially
foreign ones, a great potencial in science, technology, IT, and all kinds of
manufacturing, plus a huge pool of cheaper labour, much cheaper than China, and with better quality products, contrary to chinese poisoned products (childrens toys) or chinese plagiarism, and counterfeiting.
India can be an economic power, in the next 20 years.!
10
I cannot help but think that, despite the economic growth in India and elsewhere among the poorer nations of the world, it comes down to the developed nations' constant search for cheap labor. If that is the case it stands to reason that these lurches forward are ultimately temporary because sooner or later Indians will want a decent wage for their work. Capitalists will then move on to the next cheap labor opportunity somewhere in the world. The real question whether or not India can capitalize on a improving economy while raising the quality of life, skills, and higher level work opportunity for her teeming poor.
The sources of cheap labor are inexhaustible. Doing the arithmetic, it isn't a necessarily pretty picture, going forward. Nor is it hopeless, though.
The sources of cheap labor are inexhaustible. Doing the arithmetic, it isn't a necessarily pretty picture, going forward. Nor is it hopeless, though.
5
Labor undercuts itself by sustaining high birth rates.
Given modern medical technology, people will either reduce their birth rates or war will eventually reduce the population.
Given modern medical technology, people will either reduce their birth rates or war will eventually reduce the population.
1
India is a strategic partner of our country. Until China's economy will compete with our economy (U.S. vs China), India will be our economic partner. By the way, I know not by hearsay India has perfect programmers and IT professionals. Corruption? China has corruption, we have corruption too. Cheap labor of illegals is the eternal companion of corruption.
4
Much about what ails India is it's culture of corruption and bureaucracy. It's regulations were written in a time that was necessary to protect small land owners or poor villages from getting their rights trampled. Modi as governor demonstrated that bureaucracy could be cut enough and incentives through cutting red tape and reducing corruption could revitalize a region to prosperity. Infrastructure - roads, electricity, fuel are the cornerstone of any growth in India and this will be very expensive and time consuming for such a large nation. Prime Minsiter Modi is a breath of fresh air in India and the climate is attracting business to take a second look at India as an alternative to setting up shop in India.
15
Ahh...! Finally India sharing the lime light in the midst of all local chaos is Welcome. My humble thought is it is just a beginning and India has a long way to go in improving per capita income of our fellow citizens. No doubt about that. With Population only next to China and mostly young, India has just started reaping the so called "Demographic Dividend". India's conservative society saves a lot than they spend. It's a habit cultivated from their ancestors. We have a bulk Foreign exchange reserves to deal with any of the Rupee depreciation catastrophe similar to what Russia faces now. With Oil Import bills shrinking, it makes sense that we divert the money saved in building country's battling Infrastructure, which I believe our new FM is working with. All is well as of today and for future India needs to tread cautiously optimistic.
18
India has a keen resemblance to Brazil. Huge potential, continent size territory, human resource rich economies plagued by endemic corruption. Always on a permanent state of emerging economies.
Brazil appeared to have entered a new era of sustainable growth and prosperity for all under the charismatic leadership of Lula da Silva and the Workers Party in 2003. Optimism was short lived and reality sets in. The economy is tanked and inflation on the rise.
The newly emerging middle class is in danger of submerging. The worst public corruption case in memory, involving state oil Petrobras, may lead President Rousseff to impeachment by Congress.
According to the NYT, India 2015 appears ready to take off with Modi and his Bharatiya Janata Party. The subcontinent's economy shows the same promising signs of Brazil in 2003.
Brazil appeared to have entered a new era of sustainable growth and prosperity for all under the charismatic leadership of Lula da Silva and the Workers Party in 2003. Optimism was short lived and reality sets in. The economy is tanked and inflation on the rise.
The newly emerging middle class is in danger of submerging. The worst public corruption case in memory, involving state oil Petrobras, may lead President Rousseff to impeachment by Congress.
According to the NYT, India 2015 appears ready to take off with Modi and his Bharatiya Janata Party. The subcontinent's economy shows the same promising signs of Brazil in 2003.
4
Any company that wants to do business in India should also think about building things for people. For example toilets, better roads, etc. It is not enough to go to a country, sell your wares, make a profit and leave.
7
Experience tells one that India will somehow manage to shoot itself in the foot. It is a too fractious and fractured a country for all parts to move in the same direction for any length of time. If it split up into smaller, more cohesive units, some would progress but many would remain backward with large, semiliterate or illiterate masses. As currently constituted, it would disappoint both its boosters (never reach its so called potential) and detractors (it would not collapse as has been predicted by the talking heads in the West for so long). It would just stumble along.
appoint
appoint
1
"The World Bank recently ranked India as the 142nd-hardest place to do business out of 189 countries."
If India is the 142nd-hardest place to do business, wouldn't that mean that there are 141 places in which it is harder to do business and 47 places in which it is easier?
Surely, being better for business than ~75 % of countries can't be that bad.
If India is the 142nd-hardest place to do business, wouldn't that mean that there are 141 places in which it is harder to do business and 47 places in which it is easier?
Surely, being better for business than ~75 % of countries can't be that bad.
5
The government has an ambitious target of getting India into the Top 50 easiest places to do business within two years. Wait and watch those rankings until 2017.
1
The documentations and approval process is the main problem in Indian Society. Govt really need to work on that front.
2
Indian economy is getting sound, because the USA started to help them. The USA started ti help them , because we both have the same enemy: China. So my prediction is: the economy of China will continue to boost until China threatens the US economy.
If the USA really wanted to help the enemies of China they could easily do that by avoiding anything "Made in China". Fat chance.
It is always something of a disappointment to see essentially negative responses from so many western readers of articles about Asian nations. Is complaining about call centers all you can do? Shouldn't you contact the US companies that train and pay the hardworking folk in India? And as for customer service, do you really think it is better in the US? I've had plenty of very shabby responses from and encounters with internet service providers and utility companies right here in the US... I can tell you, they are all about the same.
This report and others like it are about trends in global economies. In the case of India, this is a massive economy that is growing at a commendable rate. If anything, this is a positive sign not just for India, but for the global economy. We no longer live in isolated bubbles. How China, Brazil and India do over the next few decades will affect the entire world. It is time to stop griping about call centers and customer service.
This report and others like it are about trends in global economies. In the case of India, this is a massive economy that is growing at a commendable rate. If anything, this is a positive sign not just for India, but for the global economy. We no longer live in isolated bubbles. How China, Brazil and India do over the next few decades will affect the entire world. It is time to stop griping about call centers and customer service.
8
I'm not surprised that Americans are not unduly enthusiastic about an article that eulogizes the growing Indian economy. Why should they be? I'm sure they would much rather see a similar article about their own economy. But judging India from a few conversations with call center employees is still ridiculous. Call Centers are a minuscule, insignificant portion of the Indian economy. Most people who work in call centers are people who couldn't find a job anywhere else. I would not have a high opinion of Americans either, if my opinion was based entirely on my conversations with people manning Walmart's checkout counters.
@atmt - yes - that is my point exactly... many of the opinions offered here are negative and based on a poor understanding of India. I would have thought that a report like this one would make people realize that there is more to India than call centers. Such as the positive growth rate. Or the fact that foreign investment in India has been increasing. Or the fact that the Jaguar-Land-Rover company is now owned and run by an Indian corporation (Tata).
2
India's political and administrative bureaucracies are corrupt, to the bone. I have worked with individuals who had opportunities to deploy technologies that would have immensely improved the lot of India's youth and educational potential. Instead, those individuals were stopped cold by educational bureaucrats who demanded bribes before they would let these individuals deploy their innovative (and proven) solutions. No amount of complaining about this to higher authority could help. Pathetic.
India will continue to be a basket case, with most of its population stuck in the proverbial gutter, until there are major changes in social policy - i.e. a social revolution that is so powerful that change is demanded.
Will this happen? Maybe. India's middle class so far is "all about me".
Last, if India is growing so fast, perhaps the Indian government can do more to create employment infrastructure sufficient to meet demand for work - instead of encouraging India's youth to emigrate to corrupt American companies who use India's poor employment infrastructure as a means to undercut corporate America's labor costs, especially in high tech.
India will continue to be a basket case, with most of its population stuck in the proverbial gutter, until there are major changes in social policy - i.e. a social revolution that is so powerful that change is demanded.
Will this happen? Maybe. India's middle class so far is "all about me".
Last, if India is growing so fast, perhaps the Indian government can do more to create employment infrastructure sufficient to meet demand for work - instead of encouraging India's youth to emigrate to corrupt American companies who use India's poor employment infrastructure as a means to undercut corporate America's labor costs, especially in high tech.
4
There was a time long, long ago when nations thrived by competing economically throughout the world against each other in a race to succeed above all other nations. National pride led to greater productivity and innovation which generated wealth and growth for a growing population. At some point several decades ago, the idea of economic interdependence as a way of survival and defense arose. The theory was that nations that had economic infrastructure and interests in other nations would be deterred from warfare against those nations. The question I pose is how much did that theory lead to the mass exodus of American industry? Was it a government led exodus as I might believe thinking of the free trade agreements?
America has lost it's Mojo. We no longer compete against the world, instead supporting other nations by sending them our wealth by purchasing foreign made products, building foreign factories that make them, and using displaced workers pension money to build those foreign empires.
As written, our President has exclaimed how much he likes that India is becoming a major economic force. He is the leader of America, not the world.
We must return to the old competitive nature of Capitalism here in America in order to compete with the rest of the world so our population can earn wealth and grow as it did before. The idea of caring for other nations is good and noble but in the real world we must put our own nation first.
We must protect our economy. No Free Trade pls.
America has lost it's Mojo. We no longer compete against the world, instead supporting other nations by sending them our wealth by purchasing foreign made products, building foreign factories that make them, and using displaced workers pension money to build those foreign empires.
As written, our President has exclaimed how much he likes that India is becoming a major economic force. He is the leader of America, not the world.
We must return to the old competitive nature of Capitalism here in America in order to compete with the rest of the world so our population can earn wealth and grow as it did before. The idea of caring for other nations is good and noble but in the real world we must put our own nation first.
We must protect our economy. No Free Trade pls.
2
India has always had intelligent hard working people. India has also always had a government that looked to enrich itself BEFORE the country & a similar culture of corruption among the government workers.
Narendrabhai Modiji was elected promising to change these, So far he has been acting in the peoples' interest. Keeping fingers crossed.
Narendrabhai Modiji was elected promising to change these, So far he has been acting in the peoples' interest. Keeping fingers crossed.
2
Bradsher’s article has not factored in the consequences of Hindu fundamentalism in India’s economic growth. How Modi‘s ideas of a free market economy sit with a culturally rooted fundamentalist Hindu ideology is yet to be seen. It is still early stages, but social and cultural issues could undermine India’s growth prospects. Looking at India’s economic future through a Western lens is fraught with pitfalls.
1
What are you talking about?!?!?
It strikes me that the centralized top own governance of China is not that different from the neo liberal top down governance of the corporate west. It's a few that gain while there is public pain. While there is big talk of "democracy" what they really mean by it is the privatizing of nationalized assets and cheap labor with little benefit as possible for the masses. They peddle the notion that the "jobs" they might provide justifies all. In fact, jobs are less and less a factor anywhere in the world, as manufacturing simply doesn't require the man power of the past. It's assets and markets that count. In China the business model means the elite make the money while the rest gets herded about. Ditto everywhere in the world! Where ever the neo liberal model is implemented, you can bet the underclass will most decidedly have its meager assets stolen, thus workers lying down in front of bulldozers to save their land and Indian farmers struggling to save their seeds. On a mass scale, land, water or the usurping of personal independence of the underclass is of huge value to the exploiters. Selling water is preferable to free. Controlling and industrializing farming is better to the neoliberals then independent farmers owning their own land. The populations are expendable and an irritant to these forces. The TPP is an excellent example of what they are up to.
5
Things have started to gradually change since Mr. Modi was elected as the Prime Minister. His party has a strong mandate in the lower house of the parliament and thus it provides a sort of stability. Prime Minister Modi has made it clear to everyone that he is business friendly. He basically wants to create job opportunities for the poor and the middle class by promoting industrial growth by MNCs. He also has promoted ways to sustain our domestic industries by introducing minor reforms. Deregulation of oil prices was one of the key issues which made clear Modi's visions of economic reforms.
His PR skills instill a sense of confidence in people. It was only because of Modi that President Obama visited India for our Republic Day parade. I have never seen a man who worked so hard for my country. His pet project "Make in India" is promising as it helps further create jobs for the aspirational youth. As an 18 year old male, who wants to set up businesses in future, I was inspired by his pro-business stance.
But the hurdles in his path are many. It is to be seen as to how Modi will tackle the issues in Rajya Sabha, the upper house of the Parliament where his party is in minority, to get the bills passed.
He has been successful in creating a sense of optimism among us Indians. We have been waiting for major tax reforms with bated breaths. Hopefully, he can deliver on his promises to bring in big ticket reforms.
His PR skills instill a sense of confidence in people. It was only because of Modi that President Obama visited India for our Republic Day parade. I have never seen a man who worked so hard for my country. His pet project "Make in India" is promising as it helps further create jobs for the aspirational youth. As an 18 year old male, who wants to set up businesses in future, I was inspired by his pro-business stance.
But the hurdles in his path are many. It is to be seen as to how Modi will tackle the issues in Rajya Sabha, the upper house of the Parliament where his party is in minority, to get the bills passed.
He has been successful in creating a sense of optimism among us Indians. We have been waiting for major tax reforms with bated breaths. Hopefully, he can deliver on his promises to bring in big ticket reforms.
24
This report is not as shallow nor as full of platitudes as most Americans would like to believe.We have a vibrant democracy and a totally free press and electronic media which tend to rip the government apart at every available opportunity.The progress,albeit slow,is real and speeding up.We are going places,and this is not due to a sycophantic media.
10
guptadkj,
While the finest of economic journalists, long-standing and accomplished, with a growing readership over the years, are unable to make surprise predictions, they are in possession of a keen mind, clarity of view and some concise sense as to which direction world economics are leading in the bigger scenario on a global-basis.
Confirming that there is nothing shallow in this international business publication, and that an American journalist well-known over the decades at the Times and The White House, Mr. Steve Rattner, has written not so long ago that India is increasingly emerging as a World Super Power. It caught the attention of this American who rarely reads economic articles.
While journalists may be controversial at the best of times, this professional economist who has worked for years in the Investment banking Industry is the epitome of responsibility when he places his pen to paper on such financial matters as the state of a country's economy.
While the finest of economic journalists, long-standing and accomplished, with a growing readership over the years, are unable to make surprise predictions, they are in possession of a keen mind, clarity of view and some concise sense as to which direction world economics are leading in the bigger scenario on a global-basis.
Confirming that there is nothing shallow in this international business publication, and that an American journalist well-known over the decades at the Times and The White House, Mr. Steve Rattner, has written not so long ago that India is increasingly emerging as a World Super Power. It caught the attention of this American who rarely reads economic articles.
While journalists may be controversial at the best of times, this professional economist who has worked for years in the Investment banking Industry is the epitome of responsibility when he places his pen to paper on such financial matters as the state of a country's economy.
2
I wouldn't get too excited. Let's wait for the Feds to increase their rates and the rupee will tank and so on and so forth.
I don't think India is interested in growing faster than China. This country is a fairly socialist one. Nothing wrong with that as there is still so much poverty. Fund managers looking for another China-like growth story should look elsewhere. It's not India.
I don't think India is interested in growing faster than China. This country is a fairly socialist one. Nothing wrong with that as there is still so much poverty. Fund managers looking for another China-like growth story should look elsewhere. It's not India.
8
As someone who has been doing business in India over the last 9 years, I couldnt disagree more with @AnonComment. There is material change at every level, and you only need to talk to locals to not just see the optimism, but hear their stories about personal advancement. Watching city after city, and not just Mumbai, get a metros, monorail, freeways and whole new cities coming up is not a chimera - its very very real. They may not catch up with China soon, but India will give its rivals a run for their money. And there is money to be made here. Big time.
16
There is still so much poverty around the globe, even in the USA. Under the Supplemental Poverty Measure, there are 49.7 million people living in poverty, 3.1 million more than are represented by the official poverty measure (46.5 million).And these are only official figures, in fact,they are supposed to be much bigger.
But it's not the deal. Let's speak about feds... Are you really convinced that they are not interested in boosting of economy? I don't think so as the only thing all officials take care about is the increasing of their wealth, which would be hard to realize under the conditions of ailing economy.
But it's not the deal. Let's speak about feds... Are you really convinced that they are not interested in boosting of economy? I don't think so as the only thing all officials take care about is the increasing of their wealth, which would be hard to realize under the conditions of ailing economy.
Interesting that in the eyes of the NYT China's "surging blue-collar wages" and deliberate slow down of GDP growth to around 7% a year to address related environmental and over capacity issues are portrayed as flaws. India better hang on to its policy independence and cast a skeptical eye on the policies Western financial elites award gold stars. India has a long way to go to catch up to China as far as educating the vast majority of its people (compare literacy rates) and raising them out of poverty while investing in public goods like infrastructure that benefit all (roads, schools and sewers etc...). Those tend not to be immediate goals of Western multinationals and the governments that pursue their interests. Although by following the Western model India can look forward to building up its military engaging in some senseless wars and further enriching its elite.
29
To add more color to your comment, the rampant use of coal power industry in India has already made New Delhi, the Indian capital, to have the dubious distinction of being the worst polluted city in Asia. And now the pollution from Indian industries are causing trouble for its neighboring countries.
We like to harp on China for the pollution its industries are creating but are more than willing to look the other way (and ignore the genocide charges against Modi) for India in our yearning to prop a bulwark against China.
We like to harp on China for the pollution its industries are creating but are more than willing to look the other way (and ignore the genocide charges against Modi) for India in our yearning to prop a bulwark against China.
2
I wonder why people are so stupid, when nothing has been proved in all investigations, you still keep flagging genocide against Modi.
Indian will be the biggest economy in this century only, that's the fact. Any country with largest population was the biggest economy in history before 1700's, when Britain took over China and in 1850's when USA took over Britain. So world should not be surprised by this progress, rather they should embrace the inevitable.
Indian will be the biggest economy in this century only, that's the fact. Any country with largest population was the biggest economy in history before 1700's, when Britain took over China and in 1850's when USA took over Britain. So world should not be surprised by this progress, rather they should embrace the inevitable.
2
Democratic or not, India and China will eventually take over the U. S. and lead the world economy.
5
David, 'eventually' means next century, Always been the same.
Modi should get the job done in the next decade (next century is just talk)
Modi should get the job done in the next decade (next century is just talk)
2
David,
At this stage in life and for this American, anything is possible whether it falls within the realm of economics, politics or science. While India and China have already long taken over when it comes to their population growth, regardless of whether this is democratic or not, China may already be facing the U.S. when it comes to the world's economy, while India is surging on all fronts, and taking the lead in Developing Countries.
At this stage in life and for this American, anything is possible whether it falls within the realm of economics, politics or science. While India and China have already long taken over when it comes to their population growth, regardless of whether this is democratic or not, China may already be facing the U.S. when it comes to the world's economy, while India is surging on all fronts, and taking the lead in Developing Countries.
2
David, both India and China have social and political problems which are huge. India has the remnants of a caste system which is still prevalent. And a more significant problem, although it is distasteful to mention, is the subject of widespread defecation in public in India.This is a wide spread problem in rural areas and negatively affects public health. See http://www.economist.com/news/asia/21607837-fixing-dreadful-sanitation-i....
With regard to China, the ruler ship of the Communist Party will be a great hindrance for world economic leadership. There are no real independent financial markets in China, where a business person can go to become the next Steve Jobs. You must have the tacit support of a government and/or party official. Despite its many flaws, the US still has the strongest business culture in the world, with regard to its citizens being motivated to start their own businesses and to support constant innovation. Why are so many of the Chinese elite sending their kids to American universities? And Americans of modest means are much more likely to participate in the stock and other financial markets that citizens of China or India. Finally, the pursuit of economic and business knowledge isn't impacted by a government trying to regulate the Internet.
With regard to China, the ruler ship of the Communist Party will be a great hindrance for world economic leadership. There are no real independent financial markets in China, where a business person can go to become the next Steve Jobs. You must have the tacit support of a government and/or party official. Despite its many flaws, the US still has the strongest business culture in the world, with regard to its citizens being motivated to start their own businesses and to support constant innovation. Why are so many of the Chinese elite sending their kids to American universities? And Americans of modest means are much more likely to participate in the stock and other financial markets that citizens of China or India. Finally, the pursuit of economic and business knowledge isn't impacted by a government trying to regulate the Internet.
The surge in growth is recent since the Centre for Monitoring Indian Economy has changed the base year from 2004 to 2012. The real effects will be felt in 2 years time. As the only other liberal secular multi-cultural growing democracy in the world with shared security concerns and an independent media, America should think of India as a natural partner instead of skepticism.
Having said that, I'm surprised by the comments ranging from irrelevance to ignorant condescension. Indian companies do not lobby with WHO & Congress to get names of ineffective medicines like Tamiflu into mandatory stock lists. There have been quality failures with one or two companies but is such an occurrence specific to India? India is not gunning to become call centre capital of the world. It suited American companies to save a truck load of money by moving low-level processes relying on English speaking skills of Indians. Call centres = less than 0.01% of India's population compared with Philippines- 3.5% of population. Indian IT companies are moving towards critical business processes and growing domestic demand. It is unfair for American companies to expect top notch quality at 1/10th costs. You approach anything, let apart outsourcing, with that mindset, you can't have quality.
India has initiated a landmark sanitation project. The world's largest solar energy plants are currently under construction in India. suggest anyone who commented here to read about projects by current administration.
Having said that, I'm surprised by the comments ranging from irrelevance to ignorant condescension. Indian companies do not lobby with WHO & Congress to get names of ineffective medicines like Tamiflu into mandatory stock lists. There have been quality failures with one or two companies but is such an occurrence specific to India? India is not gunning to become call centre capital of the world. It suited American companies to save a truck load of money by moving low-level processes relying on English speaking skills of Indians. Call centres = less than 0.01% of India's population compared with Philippines- 3.5% of population. Indian IT companies are moving towards critical business processes and growing domestic demand. It is unfair for American companies to expect top notch quality at 1/10th costs. You approach anything, let apart outsourcing, with that mindset, you can't have quality.
India has initiated a landmark sanitation project. The world's largest solar energy plants are currently under construction in India. suggest anyone who commented here to read about projects by current administration.
27
Indian IT companies are consulting companies that clamour for more US H-1B visas so they can send low paid, mediocre technical folk to the US to take American jobs from American workers.
Full disclosure: The above isn't based on information found in the US "independent media" (what a joke). It comes from working in IT in the US for 35 years, seeing what is happening and having to put up with constant, multiple rework of what these 'consultans' produce.
Full disclosure: The above isn't based on information found in the US "independent media" (what a joke). It comes from working in IT in the US for 35 years, seeing what is happening and having to put up with constant, multiple rework of what these 'consultans' produce.
1
Replying to Seeing with open eyes comment: Fact1: total H1B visa yearly quota = 65000 of which 50-60% are process centric IT jobs. Rest are regular management, marketing, engineering and science etc. jobs. Fact2: Let markets decide mediocrity and technical competence. In a free market, below par performance is edged out and above par rewarded.
4
Why not blame the companies that hire the consultants? More to the point: If India is producing too many subpar programmers, the US is producing too few, period. Companies are hring what they can find, not necessarily what they need.
3
It is all about exploiting the cheapest labor under the worst working conditions. Consider also the recent catastrophes in Bangladesh and Pakistan. The Ukraine is also in strife. Chinese wages are going up. When India changes any of its current lackadaisical policies, it too will be abandoned for the next new, cheap market. Perhaps the current port labor strikes will bring ur jobs back here where they belong. Eventually our greedy corporations will run out of options.
11
Why does the exploitation work? Because consumers in the western world insist on paying as little as possible for goods that, if produced under conditions other than the hypocritical western consumer bemoans as appalling that yield these cheap prices, they wouldn't buy.
When western consumers become western moralist, the need to ante up and pay the bill...
When western consumers become western moralist, the need to ante up and pay the bill...
2
There are hidden costs with our offshoring of our industrial production, especially the costs for the massive global troop deployments and navy to protect our shipping routes. That's in addition to the bribes we pay foreign governments to be "friendly", also known as foreign aid. We pay, either way.
PBS NewsHour recently ran a story on Modi and his policies. While factory production is up, the environmental conditions there are deplorable. Workers are exposed to terrible pollutants. India has phenomenal numbers of people that live in squalor. They also burn a tremendous amount of coal.
China is suffering terribly from lack of environmental controls. It appears that India is following their path toward economic growth which will largely benefit the owner class at the the expense of the health and working conditions of the poor. This same story has been repeated all over the world for centuries.
China is suffering terribly from lack of environmental controls. It appears that India is following their path toward economic growth which will largely benefit the owner class at the the expense of the health and working conditions of the poor. This same story has been repeated all over the world for centuries.
59
Yet, put to a vote, the people there would almost certainly say the smell is that of independence and the workers being empowered to provide for their families. Let the people there make the decisions whether it is bad enough to be exposed to the stuff or not.
If American workers don't need you to nanny them, the ones overseas certainly don't. Worry about ISIS instead, since that's who wants you burned alive on video.
If American workers don't need you to nanny them, the ones overseas certainly don't. Worry about ISIS instead, since that's who wants you burned alive on video.
10
Read "American Dynasty" by Kevin PHillips and then talk about ISIS and where it came from.
3
Kevin Phillips chooses which truths to forget and which ideas to treat as truth simply because they fit his current mindset.. He thus makes himself a totally unreliable witness although an excellent ideological campaigner.
However, he probably notes the next fad coming down the road with years it it jumping the shark and becoming a standing joke. Does that help? I bet he even Tweets.
However, he probably notes the next fad coming down the road with years it it jumping the shark and becoming a standing joke. Does that help? I bet he even Tweets.
hmmm... what is the nature of this article?
Is it journalism or an advert?
" India is emerging as one of the few hopes for global growth."
Yeah, maybe, it is also emerging as the largest nation with
continuing abject neglect for the very most basic needs of its people.
The bulk of the Indian population has no clean water, no toilets, not the least
of the basics of a viable community.
So what is this article telling us?
Is it journalism or an advert?
" India is emerging as one of the few hopes for global growth."
Yeah, maybe, it is also emerging as the largest nation with
continuing abject neglect for the very most basic needs of its people.
The bulk of the Indian population has no clean water, no toilets, not the least
of the basics of a viable community.
So what is this article telling us?
22
"The bulk of the Indian population has no clean water, "
Actually about 88% of the population has access to improved water sources...
http://www.unicef.org/india/wes.html
Actually about 88% of the population has access to improved water sources...
http://www.unicef.org/india/wes.html
6
The article is telling you to revisit your opinion about the country. Lots of Indians live in squalor, lots don't. To make the "have nots" to "haves" there are things that are required to be done. Those things are slowly being done, in spite of the many challenges ahead. I think that's what the article is trying to tell. I find it amazing, how every time there is anything remotely positive written about India (whether it's about the economy, elections, mars mission or whatever), there are always comments (like a broken tape recorder) about how everything is only poor and miserable in India. I am not sure whether outsiders realise that a significant portion of the population don't live in desperate poverty, and therefore there can be other news about India apart from the usual lack of toilet, hunger, slum, blah blah blah. And anyhow no one ever denies that these problems do exist so not sure what purpose comments such as yours are supposed to serve. However, if that's the narrative of India you prefer to stick to, go ahead.
18
Sure they may have ACCESS, but how many can AFFORD.
6
India is full of potential- in its first try it sent a satellite to Mars at 1/100th cost of NASA. The US would do good to keep and foster India as an ally, by all measures it is the most pro-America country on the planet. As an American of Indian origin, it distresses me to read comments by NYT readers that are so shallow. India is not a country that is run by call centers and textile mills. To judge a country anecdotally on your call the "United Airlines Call center" is repugnant at best. India is full of bureaucratic tangles but I have seen in the last few years significant changes for the better. While there are gross problems with infrastructure and social injustices the new government seems to be more pro-business and pro- development than any in its modern history (Delhi airport was recently rated #1 for 45million pax or > in a recent survey). Who says it has to be a quick change? China did not become an economic powerhouse overnight and India will certainly not- it has a small thing called democracy and freedom to deal with. (We still value that right?)
65
In your letter you give all the reasons why India is not what it pretends to be.
Like India being pro- business, wow does that mean that India has opened their country to big Multi National companies who are looking for slave labor, make some indecent money and move out again as they have done over and over again. You are not the only one who has spend some time back home, maybe you only talked to the privileged rich in India, who are in cahoots with your friendly Multi Nationals. India has democracy to deal with you said, you mean democracy for the rich who own much of the country, so they can pay the poor even less.
Maybe you should have a look again at some cities outside of Mumbai and see what is going on there.
Like India being pro- business, wow does that mean that India has opened their country to big Multi National companies who are looking for slave labor, make some indecent money and move out again as they have done over and over again. You are not the only one who has spend some time back home, maybe you only talked to the privileged rich in India, who are in cahoots with your friendly Multi Nationals. India has democracy to deal with you said, you mean democracy for the rich who own much of the country, so they can pay the poor even less.
Maybe you should have a look again at some cities outside of Mumbai and see what is going on there.
12
@Johan Debont - The cities outside of Mumbai are where a lot of the growth is being driven... What is it that you think you know about India that challenges the thesis of this article?
7
As an American Indian I hope India and the US get closer as they are natural allies. However lets clarify. India's Space Agency is a rare success among its cash bleeding public sector undertakings. India has a lot of potential but mere jingoism and ignorantly arguing about India's status in competition with other countries like China, US etc. is not going to get it there. Example -Emily Lakdawala (Of Planetary Society) eloquently pointed out, India's Mars mission which was well executed and is a great achievement, spent the same money per lb of payload it took to Mars. It had lot less science, highly eccentric elliptical orbit around Mars (lack of fuel) compared to US's MAVEN. Contrary to Indian media, ISRO did not discover a new shortcut to Mars. India achieved budget savings due to lower labor costs. India's quest for a major global player role will require many things. Some of the top things that come to mind. Due to its huge Government corruption is rampant. Mr. Modis ascent to power has yet to change that. Most people still want to cling to the Government teat. Environment laws are being dismantled which is regressive step. The Government is still a bully, it takes away land from people at way below market rate to give to Industries and building roads. This may be required but market price has to be paid. Current trends portend well with the country is turning away from the Nehru-family dominated Soviet influenced socialist ideology. Still a long way to go.
4
I have to deal with India many time and always ended up in frustration. They are robots, repeating the same thing over and over without any thinking involve. EVER!
The only reason I can see why so many American companies go there is low cost. It surly is not about quality.
The only reason I can see why so many American companies go there is low cost. It surly is not about quality.
13
Many Indians doing call center jobs learn fixed expressions in English. If you ask them a question which requires them to constrict a sentence in English to give you a satisfactory reply, you get a robotic reply. If you want to converse with Indians freely involving their true thinking, you need to learn their mother tongue. Or of course, Indians with professional degrees, or college education with several years of working experience speak English well, and will be able to engage in intelligent conversation with you. Sorry, Will in Chicago.
8
Shouldn't CALL center jobs responding to people in English-speaking nations require goodlanguage skills? Is not, why hire people at all, why not just use an automated system?????
Call center employees who can only provide canned, rote responses are almost more irritating that the automated systems; at least the caller knows he/she won't get much help from a recording.
Call center employees who can only provide canned, rote responses are almost more irritating that the automated systems; at least the caller knows he/she won't get much help from a recording.
2
@R Murty K- I didn't call the call center to chat, I call because I wanted to solve a problem, my problem. I'm NOT interested in converse with Indians freely involving their true thinking. I want them to know and do their job.
I'm afraid you are not getting this either.
I'm afraid you are not getting this either.
India's hubris has often been her nemesis. A strong dose of humility with pragmatic economic policies is the prescription India needs to improve her trade relationship with the West and the rest of the world.
15
Very succinctly put and I am in full agreement. Not everything is a competition. The gloating over the recent Mars (a great achievement) is an example. People forgot that even a venerable institution like ISRO (India's space research organization) stands on the shoulders of the great achievements which came before from NASA and other space agencies.
1
@Fairplayer - what is wrong with celebrating an achievement? And India acknowledged NASA's help in all of their missions - from satellite launching to the Mars mission. I don't think you realize how humble India's space scientists really are...
It can be difficult to compare western nations and economies with India or to understand how it really functions. People find the slow pace of progress and relaxed attitudes of people frustrating. But that is how it is. It is a nation that will move at it's own pace and it may not look like there is much progress. But then one day you'll hear that there are nearly a billion cell phone users in India or that their space agency sent a probe to Mars on their first attempt.
Yes, progress is slow in India, but whoever said it needs to be at breakneck speed? Don't make the mistake of thinking that Indians are not aware of their socio-cultural, gender or developmental issues, we are acutely aware of these. But we also believe in slow and solid progress and change rather than the centrally implemented approach that, for example, China has followed. Believe me, when a nation the size of India gathers momentum, it is a large momentum.
Yes, progress is slow in India, but whoever said it needs to be at breakneck speed? Don't make the mistake of thinking that Indians are not aware of their socio-cultural, gender or developmental issues, we are acutely aware of these. But we also believe in slow and solid progress and change rather than the centrally implemented approach that, for example, China has followed. Believe me, when a nation the size of India gathers momentum, it is a large momentum.
49
It has been a while since a somewhat positive story about India was published in the NY Times. Does this mean the economic news from other countries is really that bad? In any event, we should not judging the progress under the new government on a daily basis by asking "Are we there yet?". It will take at least a couple of years for any meaningful change.
32
Cheaper labor makes the richen richer.
24
My thoughts exactly. The western economists have only recipe for the nations of the world: "liberalize" and privatize, the former meaning the dismantling of worker protections and cheap wages solely for the benefit of the global capitalists.
I recall reading back in 2009,during the despair over the economic wreckage wrought by "big finance." India had escaped relatively unscathed precisely because, as their leadership stated, India had "liberalized" more slowly and had not relinquished the economy so completely to the bankers.
Here we go again: the banks and their shills in congress get away with this because of the American memory span's equivalency to that if a gnat and the endemic corruption in the target countries.
I recall reading back in 2009,during the despair over the economic wreckage wrought by "big finance." India had escaped relatively unscathed precisely because, as their leadership stated, India had "liberalized" more slowly and had not relinquished the economy so completely to the bankers.
Here we go again: the banks and their shills in congress get away with this because of the American memory span's equivalency to that if a gnat and the endemic corruption in the target countries.
10
But eventually when the cheaper labor results in lots of jobs, competition increases for labor, increasing wages, resulting in better lives for workers....like in China over last 20 years. Close ot 2 Billion humans lifted out of poverty in last few decades due to switching from communism and socialism to market oriented economies in China, India, Eastern Europe, Africa, etc.
I hope this progress does not come at the expense of clean air, water and food. I dread the idea of any Indian city having air pollution like Beijing. Already metropolises like Delhi have it bad.
16
You realize India has 10 of the top 20 most polluted cities in the word?
20
As if Indian cities are better in air pollution than Beijing, they're actually much worse.
These constant comparisons of India to China have got to stop: they're not in the same league, despite the author's gloating. They tend to delude Indians to think in the line of "If Mumbai does not work hard enough, Shanghai will catch up with her in five years."
These constant comparisons of India to China have got to stop: they're not in the same league, despite the author's gloating. They tend to delude Indians to think in the line of "If Mumbai does not work hard enough, Shanghai will catch up with her in five years."
7
The Indian model will never be like China's central model. India has never let any kind of totalitarianism take root and people value freedom far more than in China.
5
India may be the cleaner dirty shirt in a world that is experiencing deflation and bubbles popping. However, the disparities in wealth are almost criminal. Globalist oligarchs will ruin that country as they have every other one with criminal kleptocratic banking syndicates.
28
Basics need to be addressed for long term sustainable growth. We still struggle with road quality, road discipline, dust and pollution, electricity, water and not to mention corrupt. Thanks to socialist policies for decades, most labor have undue demands and can get aggressive. How can industry survive if goods cant reach ports or markets without being troubled by officials at every state crossing. We really hope things will change with Modi government. So far we don't see any tangible change in our lives. His one year in power is soon going to up.
14
It has been in the works, as the saying goes, and for quite awhile now, that while China and America are the two Superpowers of the World, India is rapidly becoming the Superpower of the Third World, and a power to be reckoned with. A fine article by Keith Bradsher, an explanatory and exploratory one, and well worth taking note of, when it comes to the important matter of hope for global growth and vast expansion.
9
Untapped market opportunities lie at the ignored bottom of India's social pyramid where basic consumer goods are sorely needed - think very small (modest needs), think big (many millions of customers).
14
Exactly! 970 million mobile phones... for example. And servicing banking requirements. Safely packaged dry goods... There are dozens of opportunities that are useful to the people who need such goods and services and companies will benefit from investment.
6
Whether India’s momentum is short-lived or sustainable hinges on .....
-------------
There is ground for optimism here. The foundation for sustainable growth was first set by new RBI policy for targeting inflation. Next came, in a record time, the deepening of reach of Banking to most of the population. This is likely to expand size of market economy considerably as and when direct transfer of money begins taking place to lower third of the economic strata.
Significant policy changes for expansion of bank branches, capitalization of banks, divestment of public sector units, subsidy reduction, have already been instituted and are in execution phase.
Three major legislative agenda are labor reforms, land acquisition legal framework, and liberalization of foreign investment in financial, retail and manufacturing to spur Make In India initiative. Here if Congress party does not back progressive reforms, it may never find political relevance again. More likely, common sense and survival instincts shall make the opposition party concur with the reforms to place India on a pucca road of sustainable double digits economic growth.
-------------
There is ground for optimism here. The foundation for sustainable growth was first set by new RBI policy for targeting inflation. Next came, in a record time, the deepening of reach of Banking to most of the population. This is likely to expand size of market economy considerably as and when direct transfer of money begins taking place to lower third of the economic strata.
Significant policy changes for expansion of bank branches, capitalization of banks, divestment of public sector units, subsidy reduction, have already been instituted and are in execution phase.
Three major legislative agenda are labor reforms, land acquisition legal framework, and liberalization of foreign investment in financial, retail and manufacturing to spur Make In India initiative. Here if Congress party does not back progressive reforms, it may never find political relevance again. More likely, common sense and survival instincts shall make the opposition party concur with the reforms to place India on a pucca road of sustainable double digits economic growth.
5
This situation was pre defined by Donald Rumsfield, couple of years ago. He had predicted at that time that India would soon be overtaking China in economic growth.
4
One's GPD per capita is 4 times the size of the other so you would expect the lower one to advance more quickly. What's more impressive is how already big economies such as China today, Japan in the 60s' and US in the 1900s' can grow so fast without running into a bump.
1
The large youth population will allow for lower wages, but will put much pressure on employment. It is a challenge for China even though the youth population is getting smaller. The downside of overpopulation is a long-term problem, economically and environmentally.
23
"Small factories no longer need to shut down every year for government inspectors to spend a day checking boilers."
Only a business journalist with no understanding of engineering would consider this to be a positive development. Just as uninspected pipelines leak, uninspected boilers fail catastrophically, Keith.
If the rest of the changes are even a little like this I expect this growth will soon be followed by dismal human tragedy.
Only a business journalist with no understanding of engineering would consider this to be a positive development. Just as uninspected pipelines leak, uninspected boilers fail catastrophically, Keith.
If the rest of the changes are even a little like this I expect this growth will soon be followed by dismal human tragedy.
92
Unfortunately in India during most of these visits the 'Boiler Inspector' may not actually visit the Boiler room. He will likely sit in the factory owners office and is served hot tea and snacks. After shooting the breeze for some time he leaves with a envelope full of cash. He then files a report stating - Boiler Inspected and found in satisfactory condition. So the above Government order really does not change anything except make it a wee bit difficult to extract money for the 'Inspector'.
4
Agree with what you say but I think this move just means that the the factory owners have to do self-certification of the boilers since it is in their interest also to keep the boiler from exploding etc. There could be random government inspections based on computer generated inspection orders so there is no scope for unnecessary delay or corruption. The factory inspector had become a bottleneck and a source of corruption.
4
So what is the norm in other capitalist and developed countries?
2
We were recently invited to a conference in India with a view to expanding business there. We tried to get visas in both the U.S. and England, but the consulates outsource the process and there was no interest in working with us to get the visas issued in time. So we didn't go, we took our business to Singapore which welcomed us with a stamp in our passports and a smile.
38
You said you were recently invited, but didn't say how recently. As of now, if you hold passport from more than 50 countries in the world, you get visa on arrival to India. India is trying to emulate Singapore. There is no question Singapore, Hong Kong, and Shanghai are the ones India needs to catch up to.
7
There seems to be progress in the visa system, with pre-paid tourist visas available online for certain nationalities, and others to come.
1
As a long-time observer and visitor to India, I am struck by one characteristic of Indians that propels them to move ahead: Indian exceptionalism. Their entrepreneurial spirits seem to have been unleashed in a maturing, open political system that projects India as nothing less than a great economic power on the world stage within decades. There may be something to this "Indian exceptionalism". Indians are in top tier in economic prosperity in the United States and other Western countries. Indian presence is significant among the top tier professionals in the most advanced and high tech industries in the United States. Given the similar environment to succeed in India -- something the Modi government is working to provide -- India's economic future looks very bright indeed.
33
Mr.Roy will do well to come back to India to prove his "Exceptionalism"
& be on top tier of high/low tech industry in India.
Living in US & Living in India is an altogether different ball game.
Indian's emigrate inspite of the perceived "Exceptionalism" which means nothing in India.
& be on top tier of high/low tech industry in India.
Living in US & Living in India is an altogether different ball game.
Indian's emigrate inspite of the perceived "Exceptionalism" which means nothing in India.
2
Those of us who hate totalitarian China find this good news. Centralized planning great for 20% growth,but very bad for efficient asset allocation. India will have to win in the end.
6
A surge in metrics used by some random economist doesn't really translate to a better quality of life for the average Indian. Indian economy will surge only when 380 million people of its poorest, which by the way, is the population of the entire US, are lifted out of poverty .
45
Well - they will only be lifted out of poverty if we keep positive economic growth... which is what is reported here. So what is your point really?
3
Trickle down based on the good will of the 1 percent is false economics.
1
My point is "inequitable distribution of wealth". Today you can carve a country the size of the U.S out of India, with an economy worse than the poorest nation on earth, and have enough people left over to create another country the size of France which is as rich as France itself. You then need to pointedly ask the question - What does it mean to be Indian? Any place on earth is wonderful and heavenly for a rich man. We are judged by how we take care of the poor and weak among us, not by how rich some of us are.
3
Nothing should be written about India until the new government has been in place for at least 2 to 3 years and demonstrated steady and fundamental progress. India has been through these euphoric cycles before. They are usually short lived. Bursts of economic activity alone cannot take India too far. Deeply entrenched structural issues remain in social and economic domains. Additionally, religious fundamentalism is on a short lease. Comparison to China is way premature. That said, India can make a difference to world economy - whether that will ever materialize only time will tell.
6
"Nothing should be written about India until the new government has been in place for at least 2 to 3 years and demonstrated steady and fundamental progress."
Why? What is wrong with getting periodic updates on the progress of one of the world's largest economies?
Why? What is wrong with getting periodic updates on the progress of one of the world's largest economies?
3
I am afraid you misunderstand Andy's point. Nothing with getting updates, unless the updates are unfounded. Peace.
@Andy - This article is a report on the fact India is already a major part of the global economy. Perhaps you missed that?
1
India needs a lot of capital and in order to attract large sums of capital Modi needs to dismantle archaic laws and curb corruption. There are many opportunities in India for investors and one should keep a close eye.
7
With the stable government at the center who is more interested in investments and growth, India is surely will make a progress in the coming 5 years.
7
I've just spent 90min on the phone with a Bangalore call center trying to change a United Airlines (world's worst airline) ticket. As a frequent traveler to India and someone who is very fond of the country and people I can say to any American company looking to outsource a customer service operation to India. Don't. The cultural differences do not translate well. I ended up canceling my ticket and choosing a proper airline after 90 min of sheer frustration, misunderstanding, 'lost in translation' moments, bureaucracy, stubbornness and just lack of knowledge on the part of the call center agents.
55
I am quite familiar with the call center business. Basically, you get what you pay for. American companies could, if they wanted to, hire Indian college graduates who speak perfect English and are highly intelligent, but the price is somewhat higher than what the cut-rate outfits are offering. The company who buys solely on the basis of price will get the bottom of the barrel.
13
Last week I made 5 visits in two cities to Air India offices in Jaipur and Agra, trying unsuccessfully to change a return ticket to the US. Never got it done. I met a German guy in the airport bar and told him my story. He said "first time in India, huh?" He said if I was experienced there I would have pulled out a 500 rupee note and got it done at my first stop. It's still the way many things get done there.
31
Every airline CEO knows that keeping American operators will cost $50 to $100 more per ticket. And most Americans will not pay more for a ticket so there we have it. Still better than children making shirts and shoes in China.
4
Modi has been compared to Regan, pro-business, anti legacy, anti union, anti government. Maybe he will succeed, maybe not, but India is market that is ignored at your peril, whether you are a business or an individual investor.
17
Whatever happened to American Capitalist COMPETITION?
The President is cheering on the Indian economy which takes Americans jobs along with his support for free trade that destroys more American jobs than it creates.
Where are the American Capitalists?
The Republicans are just as bad as the Democrats for supporting business that leaves the country then calls itself "Multinational" to avoid taxes and allegiance to the American people.
Where is the Capitalist COMPETITION?
The President is cheering on the Indian economy which takes Americans jobs along with his support for free trade that destroys more American jobs than it creates.
Where are the American Capitalists?
The Republicans are just as bad as the Democrats for supporting business that leaves the country then calls itself "Multinational" to avoid taxes and allegiance to the American people.
Where is the Capitalist COMPETITION?
2
We Indians hope the optimism turns into reality. Recent inflation data suggests the country is on a right path. But India is often dragged down by the cost it needs to pay to keep its borders secure. We are extremely unlucky with the neighbors we got. If left alone without having to deal with a constant threat of terrorism, India has potential to make quicker progress.
25
I believe the real problems are internal. Corruption, bureaucratic and governmental inertia, lack of important infrastructure (both physical and human such as education and health care) and lack of efficient institutions (in particular governmental such as a decent judiciary, land registry, police, etc.) are much more important factors slowing down economic growth than costs imposed by terrorism and defense spending. By far. And these can be fixed internally.
9
You are absolutely right about the cost to maintain secure borders; however the real culprits are not the neighbors. The real reason are the western powers.. In 1947 England divided India in two, so that it can have hegemony over India Pakistan. That did not work for them; but then USA buttonholed Pakistan, so that it can keep an eye on Russia. USA bribed Pakistan with arms and whole lot of dollars and propped their military. Even today, even though Pakistan has been hiding Osama bin Laden for 10+ years, Pakistan is the third biggest USA aid recipient, after Israel and Egypt. That is still going on today. Why?
I am big supporter of Obama, volunteered to elect him twice; but I am really disappointed in his South Asia foreign policy. He provides lot of cosmetics, like visiting India for Republic Day celebrations; but then tells Modi to forget Pakistan's terrorist actions, asks him to cozy up to Pakistan and authorizes $1 B for Pakistan, immediately after returning from India. Why can't he tell Pakistan to immediately arrest all the terrorists and stop all such activities, before he sends a $ to them? Obama is afraid of the Pentagon, which likes only military dominated governments in non-western countries. Pentagon believes that non-western countries cannot handle democracy; they can only be governed by military or some form of dictatorships. Look at US friends in non-western world - Pakistan, Egypt, Saudi Arabia, China and others.
I am big supporter of Obama, volunteered to elect him twice; but I am really disappointed in his South Asia foreign policy. He provides lot of cosmetics, like visiting India for Republic Day celebrations; but then tells Modi to forget Pakistan's terrorist actions, asks him to cozy up to Pakistan and authorizes $1 B for Pakistan, immediately after returning from India. Why can't he tell Pakistan to immediately arrest all the terrorists and stop all such activities, before he sends a $ to them? Obama is afraid of the Pentagon, which likes only military dominated governments in non-western countries. Pentagon believes that non-western countries cannot handle democracy; they can only be governed by military or some form of dictatorships. Look at US friends in non-western world - Pakistan, Egypt, Saudi Arabia, China and others.
42
First of India has had more than 70 years since Independence so it needs to start taking responsibilities for its successes and failures. Time to stop blaming the British (and often the US) for everything. BTW Nehru had a big part to play in the breakup of India and the subsequent economic mess he created due to his adopting the Soviet socialistic model. Second, if Indians have any dreams ( a long long way off) of becoming a superpower then India needs to stop worrying about that gnat called Pakistan.